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In this article, we discuss 11 best high-dividend stocks under $100. You can skip our detailed discussion of dividend stocks and their returns, and go directly to read 5 Best High-Dividend Stocks Under $100.
The current economic situation has completely altered investment trends this year. Investors are flocking to long-term investment strategies, with dividends gaining solid ground among them. Due to this, dividend stocks are outperforming other class assets this year. According to Matthew Bartolini, the head of SPDR Americas Research, the average return of 123 dividend strategies tracked in the firm's research was recorded at -8.4% as of August 2022. This was six percentage points above the return of the S&P Global BMI Index. He further mentioned that dividend yields contributed significantly to such returns.
The past performance of the stock market during bear markets shows that high-dividend stocks have outperformed their peers in nearly every market downturn. Moreover, reinvestment plans also make dividend stocks more reliable relative to other securities. Companies with strong dividend growth cycles allow shareholders with reinvestment plans to increase the value of their investments. According to Charles Schwab’s research, reinvesting dividends can significantly boost shareholders’ initial investment. Another report by the same financial services company shows that dividend securities surpassed the overall market in six out of seven bear markets from 1976 to 2022. This year through July 31, MSCI Word High Dividend Index fell by 5.8%, compared with a 15.3% decline in the MSCI World Index. Some of the best dividend stocks that are outperforming the broader index this year include The Coca-Cola Company (NYSE:KO), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ).
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Our Methodology:
For this list, we selected dividend stocks with share prices under $100 and yields above 4%, as recorded on October 18. We carefully analyzed these stocks through their dividend policies and overall financial health. The stocks are ranked according to their share prices.
Best High-Dividend Stocks Under $100
11. Medical Properties Trust, Inc. (NYSE:MPW)
Share Price as of October 18: $11.14
Dividend Yield as of October 18: 10.42%
Medical Properties Trust, Inc. (NYSE:MPW) is an Alabama-based real estate investment trust company that owns and operates healthcare facilities around the globe. In October, the stock was added to Raymond James' Analyst Current Favorite list as the firm believes that there is more upside in the hospital-focused healthcare REIT. The firm maintained a Strong Buy rating on the stock, with an $18 price target.
Medical Properties Trust, Inc. (NYSE:MPW) is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past nine years. The company pays a quarterly dividend of $0.29 per share and has a yield of 10.42%, up from a sector median of 4.3%.
In Q2 2022, Medical Properties Trust, Inc. (NYSE:MPW) reported an operating cash flow of $164.6 million, down from $180 million in the previous quarter. However, the company's revenue of $400.2 million showed a 5% growth from the same period last year. At the end of June, it had $257.2 million available in cash and cash equivalents and over $19.7 billion in total assets.
At the end of Q2 2022, 15 hedge funds tracked by Insider Monkey owned stakes in Medical Properties Trust, Inc. (NYSE:MPW), compared with 16 in the previous quarter. These stakes have a total value of over $238.5 million. Cardinal Capital was the company's largest shareholder with over 5 million shares.
In addition to some of the best dividend stocks like The Coca-Cola Company (NYSE:KO), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ), Medical Properties Trust, Inc. (NYSE:MPW) is a good option for income investors.
10. The Williams Companies, Inc. (NYSE:WMB)
Share Price as of October 18: $30.51
Dividend Yield as of October 18: 5.57%
The Williams Companies, Inc. (NYSE:WMB) is an American energy company that deals in natural gas processing and transportation. The company also has additional petroleum and electricity generation assets. In Q2 2022, the company reported a strong cash position with $1.09 billion in cash from operations, up 4% from the same period last year. Its AFFO came in at $1.13 billion, showing a 23% year-over-year growth.
On July 26, The Williams Companies, Inc. (NYSE:WMB) declared a quarterly dividend of $0.425 per share, in line with its previous dividend. The company has raised its dividend at a CAGR of 7% in the past five years and holds a six-year track record of consistent dividend growth. This makes the company one of the best dividend stocks on our list. As of October 18, the stock has a dividend yield of 5.57%.
In August, Barclays raised its price target on The Williams Companies, Inc. (NYSE:WMB) to $39 with an Overweight rating on the shares as the firm expects the US refining fundamentals to remain stable in today's market volatility.
At the end of Q2 2022, 36 hedge funds in Insider Monkey’s database owned stakes in The Williams Companies, Inc. (NYSE:WMB), down from 38 in the previous quarter. These stakes have a collective value of over $345 million.
Longleaf Partners mentioned The Williams Companies, Inc. (NYSE:WMB) in its Q2 2022 investor letter. Here is what the firm has to say:
“The Williams Companies, Inc. (NYSE:WMB) – US natural gas pipeline operator Williams contributed as it benefitted from positive natural gas tailwinds in the quarter. After scaling back the position in the first quarter, we sold the remaining position in the quarter as its price reached our appraisal value. This was a very successful investment that was extremely contrarian in 2019 and now has become much more consensus appreciated.”
9. Leggett & Platt, Incorporated (NYSE:LEG)
Share Price as of October 18: $32.67
Dividend Yield as of October 18: 5.39%
Leggett & Platt, Incorporated (NYSE:LEG) is one of the most diversified manufacturers in the US. The company manufactures a wide range of products that are designed for homes and automobiles. The company falls into the category of Dividend Aristocrats as it has raised its dividends consistently for the past 51 years. It currently offers $0.44 per share in quarterly dividends with a yield of 5.39%, as of October 18.
In the second quarter of 2022, Leggett & Platt, Incorporated (NYSE:LEG) showed growth in its operating cash flow and free cash flow at $90 million and $67.7 million, respectively. The company's strong cash generation supports its dividend payments and also indicates further growth. It plans to pay over $230 million in dividends at the end of FY22.
Truist maintained its Hold rating on Leggett & Platt, Incorporated (NYSE:LEG) with a $35 price target in October, expecting a slowdown in the company's sales in the upcoming quarters.
At the end of Q2 2022, 12 hedge funds tracked by Insider Monkey owned stakes in Leggett & Platt, Incorporated (NYSE:LEG), compared with 15 in the preceding quarter. These stakes are collectively worth over $48.3 million. Millennium Management was the company's leading stakeholder in Q2.
8. Main Street Capital Corporation (NYSE:MAIN)
Share Price as of October 18: $34.92
Dividend Yield as of October 18: 7.56%
Main Street Capital Corporation (NYSE:MAIN) is a Texas-based principal investment firm that offers debt and equity capital to middle-market companies. The company is one of the best dividend stocks on our list as it pays monthly dividends to shareholders. Moreover, it has been making consistent dividend payments to shareholders since 2007. The company pays a monthly dividend of $0.22 per share, with a dividend yield of 7.56%, as of October 18.
In Q2 2022, Main Street Capital Corporation's (NYSE:MAIN) revenue of $85.2 million showed a 26.6% growth from the same period last year. Its net asset value came in at $25.3 per share and generated $54.7 million in net investment income. In addition to this, the company had aggregate liquidity of $518.4 million while its cash and cash equivalents stood at $475 million at the end of June.
As of the close of Q2 2022, 5 hedge funds tracked by Insider Monkey owned stakes in Main Street Capital Corporation (NYSE:MAIN), down from 9 in the previous quarter. The collective value of these stakes is over $19.3 million.
7. National Retail Properties, Inc. (NYSE:NNN)
Share Price as of October 18: $39.98
Dividend Yield as of October 18: 5.50%
National Retail Properties, Inc. (NYSE:NNN) is an American real estate investment trust company that mainly invests in high-quality properties. In August, Stifel lifted its price target on the stock to $54 with a Buy rating on the shares, highlighting the company's recent FFO beat. The firm also appreciated the company's revised guidance for FY22.
National Retail Properties, Inc. (NYSE:NNN) is one the best dividend stocks on our list as the company has been raising its dividends for the past 33 years. It currently pays a quarterly dividend of $0.55 per share with a dividend yield of 5.50%, as recorded on October 18. In the past five years, the company has raised its dividends at a CAGR of 3.07%.
As of the end of June 2022, 18 hedge funds tracked by Insider Monkey owned stakes in National Retail Properties, Inc. (NYSE:NNN), the same as in the previous quarter. These stakes are collectively valued at over $92.2 million. Point72 Asset Management owned the largest position in the company in Q2.
6. Citigroup Inc. (NYSE:C)
Share Price as of October 18: $43.84
Dividend Yield as of October 18: 4.65%
Citigroup Inc. (NYSE:C) provides finance and other investment banking services to its consumers. The company reported over $9 billion in free cash flow in the third quarter of 2022, which was enough to support its dividend payments worth over $1 billion. The company has a safe payout ratio of 29%, which further signals dividend growth. Though Citigroup Inc. (NYSE:C) does not have a dividend growth track record, it has raised its payouts at a CAGR of 20.59% in the last five years. It currently pays a quarterly dividend of $0.51 per share for a yield of 4.65%, as of October 6.
In October, BMO Capital maintained an Outperform rating on Citigroup Inc. (NYSE:C) with a $71 price target, highlighting the company's strong performance across Services and Branded Cards.
At the end of the June quarter 2022, 82 hedge funds tracked by Insider Monkey owned stakes in Citigroup Inc. (NYSE:C), down from 88 in the previous quarter. These stakes have a consolidated value of over $7.4 billion. Among these hedge funds, Berkshire Hathaway was the company's leading stakeholder in Q2.
Citigroup Inc. (NYSE:C) is also gaining attention among investors alongside some of the best dividend stocks like The Coca-Cola Company (NYSE:KO), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ).
Diamond Hill Capital mentioned Citigroup Inc. (NYSE:C) in its Q1 2022 investor letter. Here is what the firm has to say:
“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”
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Disclosure. None. 11 Best High-Dividend Stocks Under $100 is originally published on Insider Monkey.
